Nature & Magnitude of Work Force and Unemployment in

India
Un employment is a state of joblessness in an economy. This Unemployment
usually measured in terms of unemployment rate. (UER)
UER where the number of unemployed individuals will be divided by the
total number of employed individuals. Public above aged 16 and above will
be called unemployed if they are out of work.
Based on the UER if the rate is around 6% or more, then the government
will try to stimulate the economy and create jobs. UER is almost same in
both in rural and urban areas. Whereas in urban areas more number of
educated unemployed and in the rural areas, labor and agriculturists will be
unemployed for almost 6 month in every year.
Types of Unemployment will include:
cyclical
structural,
Frictional,
Voluntary,
hidden and
long term unemployment.

Most of the unemployment in India is structural.

Though presently there is a Keynesian type of
involuntary unemployment remains a greater cause for
anxiety.
Concepts of Unemployment: The three concepts of
unemployment developed by NSSO are :
a) Usual status
b) Current weekly status
c) Current daily status unemployment.
The usual status UER is a person rate and indicates
chronic unemployment because all those who are
found usually unemployed in the reference year are
counted as unemployed.
Current weekly status concept determines the
activity status of a person with reference to a period
of proceeding seven days.
Current daily status concept considers the activity

According to latest NSSO 68th round results, unemployment rate

according UPS approach was 2.2% in 2011-12.
Compared to the UER in rural areas, UER was higher in urban areas.
i.e., 1.7 % in rural areas and 3.4 % in urban areas.
UER estimated according to the CDS approach were the highest (5.7
%) in rural areas and 5.5% in urban areas and 5.6 % overall rate.
The 12th five year plan hopes to make the manufacturing sector a
genuine engine of growth, which could generate 100 million work
opportunities by 2022.
it is often argued that, a high rate of economic growth is a necessary
condition, but not a sufficient condition to solve the unemployment
problem in India.
In India, where employment elasticity is quite low, an annual growth
rate of 8-9 percent can provide only a partial solution to the
unemployment problem.

What are causes for unemployment:

1) Increasing population: India is the second largest country
in population and this rate may be doubled in next coming
decades. Program for family planning have so far not yielded
desired results.
2) Limited land: land is not sufficient for the growing
population.
3) Seasonal Agriculture: if provides employment to the rural
people in a particular season only.
4) Fragmentation of land,
5) Backward method of agriculture
6) Decline in cottage industries
7) Defective education
8) lack of transport and communication system
9) inadequate employment planning

MAJOR EMPLOYMENT PROGRAM IMPLEMENTED TO REDUCE

UNEMPLOYMENT IN INDIA
Swarna Jayanthi Gram Swarajgar Yojana
swanrna jayanthi shahari rojgar yojana
Prime minister rojgar yojana
The National rural employment guarantee program
The Rural landless employment Guarantee program
The Integrated Rural development program
The Scheme of Training Rural youth for self employment
Jawahar rojgar yojana
The employment assurance shceme
Mahatma Gandhi national rural employment guarantee program.
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